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TABLE 17-9
What are the factors that determine the acceleration time (in sec.)from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected:
Accel Time: Acceleration time in sec.
Cargo Vol: Cargo volume in cu.ft.
HP: Horsepower
MPG: Miles per gallon
SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0
Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0
The regression results using acceleration time as the dependent variable and the remaining variables as the independent variables are presented below. The various residual plots are as shown below.
The coefficient of partial determination (
)of each of the 5 predictors are,respectively,0.0380,0.4376,0.0248,0.0188,and 0.0312.
The coefficient of multiple determination for the regression model using each of the 5 variables Xj as the dependent variable and all other X variables as independent variables ( )are,respectively,0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Table 17-9,what is the value of the test statistic to determine whether MPG makes a significant contribution to the regression model in the presence of the other independent variables at a 5% level of significance?
Price Competition
A market condition wherein businesses attempt to attract customers by lowering the price of their goods or services compared to competitors.
Differentiated Products
Goods or services that are distinguished from similar offerings by unique characteristics, brand, quality, or features.
Buyer Power
The influence that purchasers have over sellers in determining product pricing, quality, and terms of sale.
Value Capture
The process of retaining a portion of the value provided in every transaction, often seen in business and economic models.
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